A n n u a l r e p o r t 1 9 9 7

G R O U P Co Cn o n tt e e n t s n t s ANNUAL REPORT Year ended December 31, 1997

◆ Message from the Chairman...... 2

◆ Executive Committee...... 4

◆ Technip Group Profile ...... 6

◆ Hi g h l i g h t s ...... 8

◆ Financial Position...... 10

◆ The Year in Review ...... 14

◆ Lines of Business ...... 16

◆ Environment and Safety ...... 36

◆ Human Resources ...... 37

◆ The Technip Group Worldwide ...... 38

A limited company capitalized at FF 330,650,980

He a d q u a r t e r s: Tour Technip - La Défense 6 - 170, place Henri Régnault 92973 Paris La Défense cedex - France RCS Nanterre B 589 803 261 Ph .: 33 (0) 1 47 78 21 21 - Fax: 33 (0) 1 47 78 33 40

G R O U P Message from the Chairman Message from the Chairman

would like, first of all, to thank our shareholders, as well as our clients, for the interest they have I shown in TECHNIP and for the confidence they have have placed in the members of its staff.

In 1997, the TECHNIP group posted a strong rise in its results in spite of a difficult environment, made worse by the monetary crisis in Asia and the slowdown in economic growth within that area of the world. The consolidated turnover amounts to 11.9 billion French francs (+17% over 1996) with consolidated net earnings increasing 17.4% over the previous financial year and climbing to 627 million French francs. In addition, TECHNIP has begun the year 1998 with a backlog of 16.3 billion French francs, representing well over a year's turnover.

Geographically, the breakdown of activity has evolved in favor of Western Europe, which has reached a peak at 40% of the turnover and now represents the leading area of activity for the Group. Activity in Africa has more than doubled due to the LNG project in Nigeria and should grow as work on the MIDOR refinery in Egypt progresses. With 17%, the Middle East has remained stable in absolute value. Asia represents 11% (5% in China and 6% in Southeast Asia), in decline because of the intense price competition.

In regards to the sectorial breakdown, hydrocarbons (refining, gas, upstream) have experienced a marked increase, from 45% to 54%, of a turnover that has itself grown by 17%. They should continue to represent an important component of the activity in 1998 due to major contracts won in 1997, in particular in the field of refining (Egypt, Venezuela, Dubaï, Turkmenistan, Poland, etc.).

Petrochemicals have remained stable in absolute value thanks to certain technological domains (ethylene, polyethylene, polypropylene, PTA) and are progressively swinging back to industrialized countries (contracts with AMOCO in the USA, with BP CHEMICALS and AP P R Y L in Great Britain, with DSM in the Netherlands and in Germany, with KNAUF in Belgium).

The field of diversified industries dipped slightly while still concentrating on its main sectors. Cement, marked by the award of a major turnkey contract in the Emirate of Ras Al Khaimah, also remains very active in plant renovation/expansion, a specialty in which TECHNIP CLE has become a world leader. The pharmaceutical industry represented a significant workload, in France, won from major laboratories such as MSD, BOEHRINGER and PFIZER.

Lumpsum tunkey contracts are becoming more and more prevalent in hydrocarbon-producing and emerging countries, calling into play all of TECHNIP's capabilities in arranging financing and international procurement. At the same time, other types of contracts are being developed, such as alliance contracts, where the engineering firm, its partners and the client work in close

2 collaboration (Elgin-Franklin in the North Sea and PT PENI in Indonesia) and especially FEED contracts—elaborate front end engineering designs which draw on the technological expertise of the engineering firm. TECHNIP is currently carrying out several FEED projects likely to result in the realization of major projects, notably in the fields of gas in the Middle East and petrochemicals in Europe.

Faced with a new geographical redistribution, TECHNIP has managed to establish a foothold in new markets: the new Central Asian republics (without abandoning Russia for as much); Northern Europe including Great Britain; the USA and Australia. TECHNIP has also modified its approach to fast evolving markets like China by creating a joint venture company with local partners.

Following the example of its clients, which are now international joint ventures, TECHNIP has multiplied case-by- case associations with major international engineering companies to widen its accessible market while reducing the risks on large-scale projects.

The Group has also endowed itself with its own structures to complete its technological offer. The takeover (80% of the capital) of CBS ENGINEERING in Houston will strengthen its positions in the upstream sector, provide it with an access to the Gulf of Mexico and allow it to promote the technologies developed by TECHNIP- GEOPRODUCTION to the major American petroleum firms. The creation of KREBS-SPEICHIM, a company managed equally with SGN, will allow, notably, the development, on an international scale, of fertilizer activities (urea, and the complete range of nitrogen and phosphate products), basic chemicals, specialty chemicals, pyrotechnics as well as the evironment and safety, both of which are of the utmost importance to us.

Thanks to its solid financial situation, its great flexibility in adapting to market evolutions, and its constantly renewed efforts to reduce its costs (engineering, equipment, jobsite), TECHNIP is prepared to face its ever fierce international competition and to ensure its own development. The 6400 men and women of the Group, who are working in this direction, and I thank them for this, are the best guarantee for our success. The year 1998 can be approached with confidance.

Chairman and Chief Executive Officer

3 Ex ecutiveExe c u t i v e committeecommittee

▲ ▲ ▲ ▲ ▲ ▲ ▲ L u c i e n Jacques Ge o rg e s Pi e r r e Da n i e l Xavier An n e S A J U S VE R D I E R KR A MM E R VAI L LA U D BU R L I N JAC O B DE C R E S S A C Se n i o r Chief Se n i o r Ch a i r m a n Se n i o r Se n i o r Ex e c u t i v e Ex e c u t i v e Operating Ex e c u t i v e of the Board Executive Ex e c u t i v e Vice President Vice President Of f i c e r Vice President and Chief Vice President Vice President Personnel and Business and Ex e c u t i v e Finance and En g i n e e r i n g Co m m u n i c a t i o n Op e r a t i o n s Of f i c e r Co n t r o l Pr o c u r e m e n t an d Co n s t r u c t i o n

4 BoardBoa r dof of dirdirectorsec t o r s on April 30, 1998

Pi e r r e VAI L LA U D Chairman of the Board and Chief Executive Officer

Miguel CAPA R RO S Olivier APPERT Daniel VAL OT Philippe JEUNET Olivier BAR BA RO U X Bruno WEYMULLER Je a n - P i e r r e LAMO U R E

GAZ DE FRANCE ISIS (groupe IFP) Permanent representative: Permanent representative: Jacques MAIRE Achille FERRARI

AuA u d d i i t t o o r sr s

Cabinet Barbier Frinault & Autres represented by: René PROG L I O Titular Auditor

Gilles PUISSOCHET Claude CHARRON Lau r ent LEVESQUE Alternate Auditor Titular Auditor Alternate Auditor

5 TechnipTechnip group group pr oprofilef i l e

Bu s i n e s s: engineering and co n s t r u c t i o n

TECHNIP's business is designing and building industrial and service facilities. Its experience and flexibility allow it to handle everything from preliminary studies to turnkey delivery for individual units as well as fully integrated complexes in a wide range of sectors, covering both its core activity of hydrocarbons and petrochemicals as well as selected industries.

A wor l d - c l a s s gro u p

In France, the TECHNIP group is the leading engineering and T E C H N I P construction organization. In Europe, it ranks number two. Worldwide, with an annual turnover of around US $2 billion Headquarters (Parent company): Paris - France and a permanent staff of 6,400, it is one of the world's six Date of incorporation: 19 5 8 leading full-service engineering and construction groups Chairman and CEO: Pierre VAILLAUD operating in its core business. Sh a r e h o l d e r s: ISIS GAZ DE FRANCE 32.6 % TO T A L ELF GROUP Ful l - r ange services including management and Pe r s o n n e l: 3.8 % lump-sum turnkey contrac t s French retail and institutional investors: 31.1 % For any project, the TECHNIP group can provide all or part of International investors: 32.5 % the following services: design, engineering, procurement, construction and project management services.

T E C H N I P G R O U P Every year, the TECHNIP group successfully carries out

In-house staff: 6.400 worldwide projects of all sizes, including hundreds of small projects, Turnover: over US $2 billion in 1997 adapting its multi-disciplined project teams to the specific (60% outside of Western Europe) needs of each contract. Net profit: US $110 million in 1997 In addition, supported by its strong project management Main operational bases: structure and its wide experience in joint ventures with foreign France, Italy, Abu Dhabi, Malaysia, China, Venezuela and the USA partners, the TECHNIP group is also capable of taking on major turnkey contracts worth several hundred million dollars

6 1997 sectorial breakdown (in turnover) and arranging the necessary international financing. Industries, Moreover, completely independent from suppliers, the infrastructures TECHNIP group is fully experienced in seeking the best (17%) available equipement at internationally competitive prices. Refining, gas (47%) Act i v e in hydroc a r b o n s , pe t r ochemicals and other selected Industries Petrochemicals, The TECHNIP group's principal fields of activity have fertilizers (29%) developed along three main lines:

Hydrocarbons production and processing: Petroleum upstream (7%) • Gas and oil field development (onshore and offshore), oil refining, gas processing and liquefaction

Petrochemicals and fertilizers: Aromatics, olefins, polymers 1997 geographical • breakdown • Ammonia, urea, nitrogenous and phosphated fertilizers (in turnover)

Industries, infrastructures, service buildings and other Americas diversified fields: (8%) • Light Industry (fine chemicals, pharmaceuticals, food Western processing and beverages, textiles, micro-electronics) Africa Europe (40%) • Heavy Industry (cement, glass and ceramics, pulp and (17%) paper, hydrometallurgy) • In f r a s t r u c t u r e s: • Power generation • Water treatment and desalination Far East (11%) • Transportation systems C.I.S., • Environmental protection Central Asia (7%) • Advanced systems engineering Middle East • Operation and maintenance. (17%)

Major operational bases for a worldwide pres e n c e

The TECHNIP group conducts more than 90% of its activity outside of France, mainly in Europe, the Middle East, Africa, Asia and Latin America.

Major operational bases outside of France include TECHNIPETROL in Italy, TECHNIP in Abu Dhabi, TECHNIP MALAYSIA, TECHNIP TIANCHEN in China, DIT-HARRIS in Venezuela and CBS ENGINEERING in the USA. •

7 Hi g h l Hi g i g h h t l i s g h t s

Sharp rise in res u l t s

Despite a difficult economic environment, the TECHNIP Group's net earnings rose sharply to 627.1 million francs in 1997, an increase of 17.4% over the previous year, while the economic turnover climbed to 11.9 billion francs (+17%).

Ne w peak for activity in Western Europ e

Western Europe accounts for 40% of consolidated economic turnover, its highest point in the last five years. Business is gradually moving from a previous focus on Southern Europe to countries in Northern Europe: Germany, Belgium, the Netherlands and Great Britain.

Nu m e r ous successes in ref i n i n g

Worldwide, investments in oil refining have generally been limited. Nevertheless, TECHNIP was awarded a series of contracts for major projects in this sector (Egypt, Venezuela, Dubaï TECHNIP's technological expertise and Multiplication of and Turkmenistan). TECHNIP also are likely to result in major turnkey international joint ven t u re s successfully completed two important projects (particularly in the Middle East To increase its chances of winning new projects during 1997: the Leuna refinery in the field of gas and in Europe in the contracts and in order to optimize risk in Germany and the Bukhara refinery field of petrochemicals). management on very large projects, in Uzbekistan, both of which the TECHNIP group has multiplied represent outstanding references for Gr eater role for financial its associations, on a case-by-case the TECHNIP group. en g i n e e r i n g basis, with other major engineering Clients increasingly call on the companies, who are thus, according to De velopment of TECHNIP group's expertise in financial circumstances, either partners or FEED contrac t s engineering to assist them in arranging competitors. At present TECHNIP is Although turnkey contracts continue to complex project financing and Security working in joint ventures on specific represent 85% of economic turnover, packages. Relevant contracts brought projects with five leading American the share of FEED contracts has been into force in 1997 include: the refining engineering firms, two firms from growing at the same time. These unit in Turkmenistan, the Ras Al Germany, one from Great Britain, contracts consist in front end Khaimah cement plant and the MIDOR one Italian, one Japanese and three engineering designs drawing on refinery in Egypt. from Korea.

8 Creation of Reinforcement of KREBS-SPEICHIM upstream resources

The creation of KREBS-SPEICHIM, a With TECHNIP-GEOPRODUCTION joint venture company owned equally in Paris and Abu Dhabi, TECHNIP with SGN, significantly reinforces MALAYSIA at Kuala Lumpur and CBS TECHNIP's presence in the field of ENGINEERING at Houston, Texas, fertilizers and in different sectors of the the TECHNIP group now counts chemical industry. approximately 900 people working exclusively in the oil and gas upstream Founded in December 1997 through the sector. The takeover of the majority merger of TECHNIP-SPEICHIM with share in CBS ENGINEERING (80% of the KREBS, the new company, thanks to its capital), which ensures the Group's staff of 1,000 people and its combined proximity to major American oil capabilities, has the resources to companies and gives it access to the become a leader in chemical engineering Gulf of Mexico, and the recognition in Europe. of certain technologies developed by TECHNIP-GEOPRODUCTION (in Tran s f er of TECHNIP's particular, through the selection of the st a k e in SGN TPG 500 for Elgin-Franklin) represent Under a July 1997 agreement between major assets in the pursuit of the TECHNIP and COGEMA providing for, development of this activity. in particular, the creation of KREBS- SPEICHIM, TECHNIP ceded its 34% Well-balanced own e rs h i p equally among three groups: the stake in SGN to COGEMA and was original shareholders (ISIS, GDF, TOTAL compensated with shares in COGEMA At the end of 1997, the ownership of and ELF), foreign investors and French representing a 3.5% stake in the company. TECHNIP was divided practically shareholders. •

9 FinancialFinancial positionposition

Consolidated accounts as at December 31, 199 7

Gr oup res u l t s Group net profit amounted to 627.1 million francs, compared and activity to 534.2 million francs in 1996, representing growth of 17.4%.

In spite of a difficult international environment the Consolidated turnover of the TECHNIP group a m o u n t e d TECHNIP Group's activity and results showed, as in 1996, to 11,868 million francs, and grew by 17% compared to strong growth. They were not affected by the fluctuations in previous year.

Asian currencies and the US dollar, thanks to the Group's It incorporated half-year's sales from the recently established continuous prudent foreign exchange management. They K R E BS-SPEICHIM company consolidated under the validated the Group's strategy to focus on anticipating proportional method (50%). For comparative purposes, industry trends rather than fighting for regional the turnover increase would have been 15.5% without market shares. K R E BS- S P E I C H I M .

Throughout the year, the Group continued the implementation of various contracts (engineering together with equipment and construction), which were significant in terms of turnover, in particular the Leuna refinery in Germany, the gas liquefaction plant in Bonny, Nigeria, the PTA plant (purified terephthalic acid) for Amoco at Geel in Belgium, the refinery at Bukhara in Uzbekistan, the refinery for Midor near Alexandria in Egypt and the petroleum platform for Elgin-Franklin in the North Sea.

In addition, other contracts signed and begun in 1997, will fully contribute to the Group's activity over the next twenty four months.

Among the significant developments, we would highlight the strong activity in Western Europe which contributed 40% of the turnover, and the growth from 6% to 17% of the activity in Africa. The refining and gas segment represented an important component of the activity with a contribution of 47% of the turnover compared to 41% in 1997. Turnkey or similar contracts remained at 85% of turnover.

The uncompleted part of contracts in progress (b a c k l o g) , which only includes contracts in force, amounted to 16.3 billion francs at 31 December 1997 and represents in excess of one year's turnover and, depending on the level of completion of the contracts, will be spread over roughly the next two years.

10 Income before tax, which shows the Group's activity most Taxes paid by the Group, either for each of its subsidiaries, clearly, was 1,012.9 million francs for the year. This or for contracts, in application of the fiscal laws of the represented 8.5% of turnover and increased by 27.4% country in which the contract was carried out, amounted to relative to 1996. Income before tax is made up of the 361.9 million francs. This represented a nominal tax rate for following three elements, which may evolve differently the Group of around 37%, which is slightly higher than that depending on the type of contract (service or turnkey), and of 1996. This rate includes the temporary additional French how it is accomplished: corporate tax burden.

• Operating income, which amounted to 864.2 million The income from (consolidated entities under equity method) francs for the year. It progressed 25.5% compared to the mainly resulted from SGN’s contribution for the first half of previous year, which amounted to 688.6 million francs. 19 9 7 . The turnover including the financial income generated by After distribution to minority shareholders, the Group's net cash flow on contracts amounted to 115 million francs in profit amounted to 627.1 million francs for 1997. Expressed 1997 compared to 160 million francs in 1996. Decrease is per fully diluted share (i.e based on the current capital and mainly due to the low interest rates on main financial supposing that all attributed subscription options have been market places this year. exercised), the net result per share represented 36.72 francs. • • • Operating expenses, which amounted to 11,004.2 million francs, represented 92.7% of turnover. They mainly concerned equipment purchases and construction 11 , 8 6 8 subcontracting on the one hand, for 9,354.6 million francs, 10 , 1 4 0 and payroll expenses amounting to 1,570.9 million francs, on the other. Payroll expenses increased by 2% compared 9, 3 3 6

to an equal number of employees. Due to the integration 8, 9 5 2 of CBS ENGINEERING and KREBS-SPEICHIM, manpower increased in 1997 by 14%. Evolution of Consolidated • Financial income, which amounted to 155.4 million francs Turnover in 1997 relates exclusively to cash management of the (in millions of French francs) Group's own funds. It was the result of investments selected for their safety and liquidity and of dividends from the Group's investments portfolio.

• Extraordinary charges, which amounted to 6.7 million francs in 1997, should be compared to a charge of 23.9 million francs in 1996. 19 9 4 19 9 5 19 9 6 19 9 7 This included:

- the cost of personnel leaving the company, in the 62 7 . 1 framework of human resources management at 53 4 . 2 the Group level, adapted to the needs of each operational ba s e . 44 0 . 3 - the 10-million-franc allowance for geopolitical risks, set aside in order to limit exposure to a brutal deterioration 37 1 . 2 of environmental conditions. This increase was mainly due to a higher backlog as at December 31, 1997. - the reversal of a 10-million-franc provision for Evolution miscellaneous expenses. of group consolidated profit - gains on sales of non consolidated investments (in millions of French francs) (before tax).

19 9 4 19 9 5 19 9 6 19 9 7

11 FinancialFinancial positionposition

• • • The consolidated balance sheet sheet. After deduction of the transfer of SPEICHIM, the net and its financial structure impact amounted to 740 million francs. Cash flow generated in the year amounted to 683 million Shareholders' equity at December 31, 1997, before francs, compared to 592 million francs the previous year. allocation of the profit for the year, amounted to 3,269 million francs compared to 2,745 million in 1996. This Fixed assets, financed by shareholders' equity was slightly continued increase includes, amongst other things, capital above that of the preceding year. This evolution was mainly a increases made on June 30, 1997 and reserved for the result of TECHNIP's investment in COGEMA arising from Group's employees. COGEMA's capital increase suscribed by TECHNIP and paid up by the SGN securities’ transfer. The change in scope of consolidation (with the integration of K R E BS-SPEICHIM and its affiliates by the proportional Work in progress, which represents the aggregate cost method) showed an increase of the consolidated balance incurred on all contracts under implementation, amounted to 20,191 million francs as at December 31, 1997. For the previous year, it amounted to 19,447 million francs. Increase results mainly from the integration of KREBS-S P E I C H I M . 68 3 Evaluated at cost, the work in progress concerns mainly turnkey contracts, FOB or other similar contracts. These 59 2 contracts are financed by progressive payments from clients. As at December 31, 1997, those payments amounted to 51 4 22,352 million francs. 47 9 The Group’s Total provisions for contingencies expenses r e p r e s e n t e d cash flow 1,965 million francs, decreasing by 121 million francs (in millions of French francs) compared to the previous year. They mainly cover contract contingencies, expenses to complete contracts that are awaiting provisional acceptance, miscellaneous expenses, and the evaluation of geopolitical risks.

Indeed, carrying out lumpsum turnkey contracts for export leaves the Group open to more than the usual contractual industrial, commercial and financial risks.

19 9 4 19 9 5 19 9 6 19 9 7 The provision for geopolitical risk is calculated each year based on various risk appraisal criteria. It is based on the work still to be completed for contracts under way (backlog). As at December 31,1997, after a 10-million- franc supplementary

20 , 1 9 1 allowance, the reserve amounted to 570 million francs. 19 , 9 0 4 3,269 19 , 4 4 7

2,745

18 , 6 2 8 2,256 Evolution of 1,941 the Group’s work in progress (in millions of French francs) Evolution of the Group’s shareholders’ equity (in millions of French francs)

19 9 4 19 9 5 19 9 6 19 9 7 1994 1995 1996 1997

12 Financial debt, which represented 594 million francs last year is steady at 602 million francs, as at December 31, 1997. Taken out primarily with financial institutions in the form of pre-financing deals or credit lines, these funds are mainly used to finance long-term contracts. •

Co r p o r ate financial statements as at December 31, 199 7

Tu r n o v e r represented 2,978 million francs, with a profit of The Board of Directors, on March 13, 1997, again calling 974.2 million francs, including 560.8 million francs of long upon the authority granted them by the Extroardinary term net gain on sales of investments. Without this gain, the General Meeting of May 16, 1995 decided a new allocation of net profit amounted to 413.4 million francs, compared to stock options to 167 beneficiaries. This offer concerned a 376.1 million francs in 1996. total of 178,973 shares at 20 francs each.

The significant evolution of the different elements The subscription price was fixed at 568.96 francs per share. constituting the working capital mainly resulted from the Throughout the year, no options were exercised concerning completion of major contracts, (for example the refinery at this plan. • Bukhara in Uzbekistan, the Leuna refinery in Germany, the ethylene plant in Qatar, the polyester plant at Liao Yang in China, the Losartan pharmaceutical unit, for MSD in France), as well as sustained activity for the contracts in progress: the hydrocarbon processing plants in Abqaiq, Saudi Arabia, for SAUDI ARAMCO, the Sibline cement plant in Lebanon, the refinery in Turkmenistan and the Ras Al Khaimah cement plant in the U.A.E.

The significant evolution of the investments is mainly explained by the 700 million francs worth of SHAREHOLDERS’ LOG shares in COGEMA resulting from the capital increase reserved for TECHNIP and paid up by In French francs 1995 1996 1997 the SGN securities' transfer. Share capital at the end of the year 317,554,100 325,406,480 330,650,980 Shareholders' equity amounted to 2,685 Number of shares in issue (on 31 December) 15,877,705 16,270,324 16,532,549 million francs as at December 31, 1997, before Potential number of shares (on 31 December) 16,494,555 16,783,431 17,077,169 distribution. Share price : highest 337 508 809 Stock options lowest 243.5 336 462 on December 31 337 487 635 It is to be noted that the Board of Directors, Consolidated operating income diluted per share 39.55 47.36 59.31 during the meetings held on March 25, 1993, Net consolidated result diluted per share 26.70 31.83 36.72 March 30, 1994, February 13, 1995 and March Dividend per share 9.00 10.50 14.50 14, 1996, according to the authorizations Dividend/net consolidated result ratio 32.5% 32% 38.2% granted by the Extroardinary General Meetings Total revenue per share (net dividend + tax credit) 13.50 15.75 21.75 of February 11, 1993 and May 16, 1995, have Gross yield per share (price december 31) 4% 3.2% 3.4% granted Technip stock options. Stock Department - Banque Nationale de Paris - CETT - TN E Throughout the year, 44 options were 13, boulevard Barbès - 75018 PARIS, France exercised, for 146,560 shares at 20 francs, TECHNIP’s Shareholders Relations - Patrick PICARD which corresponded to an increase in nominal 170, place Henri Régnault - 92973 Paris La Défense cedex, France - Ph.: 33 (0) 1 47 78 30 86 capital of 2,931,200 francs.

13 TheThe year year in rereviewvi e w

Ja n u a r y Ma y

Contracts for two FCC's: Asbestos removal: TECHNIPETROL is awarded, on a TECHNIP TPS is entrusted with the turnkey basis, the expansion and engineering and project management revamp of two catalytic crackers services related to the removal of (F C C ' s ): in Po l a n d at the Plock refinery asbestos from the Berlaymont building, and in C o l o m b i a at Barrancabermeja, the headquarters of the European Union in association with its Colombian Commission in Brussels, Belgium. affiliate TIPIEL SA. Ju n e

Feb r u a r y Eg y p t :

U. S . A . : Ma rc h The billion-dollar project, awarded to TECHNIPETROL - TECHNIP - TECHNIP TECHNIP, in association with FLUOR Great Britain: INTERNATIONAL, for the design and DANIEL, is selected by AMOCO Within the framework of the construction of a 5-million-ton-a-year CHEMICAL to design and build a development of the Elgin-Franklin refinery at Ameryia (Alexandria) comes 250,000-ton-a-year polypropylene fields in the British sector of the North into force. plant at Chocolate Bayou, Texas. Sea, ELF EXPLORATION UK awards the Saudi Arabia: joint venture TPG UK (TECHNIP TPL wins a US $30 million turnkey Group)/ McDERMOTT MARINE contract to expand the power generation C O N S T R U C T I ON/BARMAC a contract plant at Yanbu. for the engineering and construction of a TPG 500 platform designed to treat 14.6 million m 3/day of gas and to produce 150,000 barrels/day of oil.

U. A . E . : TECHNIP and RAS AL KHAIMAH CEMENT CO. sign a contract, worth about US $150 million for the turnkey construction of a cement plant, with a capacity of one million tons a year of "Portland" cement, to be built at Khor Kwair in the Emirate of Ras Al Khaimah. Ve n e z u e l a : Ap r i l PETROZUATA awards CONTRINA (a joint venture company that includes ISO 9001 certification: TECHNIP and DIT-HARRIS) a US $600 TIPIEL SA, the Group's Colombian million contract for the engineering and affiliate located in Bogota, receives construction, at Jose, of the first Orinoco ISO 9001 certification from Bureau extra-heavy crude oil processing Veritas Quality International. facilities.

14 Australia: stream with the start-up of the distillation TECHNIPETROL wins a contract unit, which is the first industrial worth about US $100 million from application of the D 2000 progressive WESFARMERS CSBP Ltd. for the design distillation process, patented and and construction of a 650-ton-a-day developed by TECHNIP in partnership ammonia plant at Kwinana, near Perth. with ELF. Ac q u i s i t i o n : No vem b e r TECHNIP reinforces its position in the Uz b e k i s t a n : upstream sector with the takeover of 80 % Fr a n c e: Provisional acceptance of the 2.5- of the capital of CBS ENGINEERING In c . , BOEHRINGER INGELHEIM's new million-ton-a-year refinery at Bukhara headquartered in Houston, Texas, pharmaceutical production facilities, is pronounced following successful U. S . A . at Reims, are delivered by TECHNIP, performance tests. The complex whose responsibilities covered had started up three months ahead engineering and project management of schedule. for the renovation of the existing unit and the doubling of its capacity to U. A . E . : 800 million units per year. TECHNIPETROL's contract, awarded in June by ENOC PROCESSING CO. for Se p t e m b e r the turnkey construction of a refinery at Dubaï, is amended to double the Br a z i l : initially proposed capacity of the plant Performance tests of the no.4 burning to 120,000 barrels/day. line at the Salto de Pirapora cement plant in Brazil are successfully De c e m b e r Ju l y completed following the renovation and Corporate news: modification of the facility by TECHNIP Saudi Arabia: KREBS-SPEICHIM, a joint venture CLEPLAN to double its production TECHNIPETROL receives the acceptance company equally owned by TECHNIP capacity to 5,000 tons a day. certificates for two turnkey plants in and SGN, is created, with a mandate to Saudi Arabia: a 1,600-ton-a-day sugar Oc t o b e r develop its activities in chemical refinery at Jeddah and a major ceramic engineering, particularly in the fields sanitary equipment plant at Yanbu Ge r m a n y: of fertilizers, specialty chemicals, (400,000 pieces of equipment and The 8.7-million ton-a-year MIDER (ELF pyrotechnics, basic chemicals and 40,000 bathtubs a year). Group) refinery at Leuna is brought on environmental protection. • Au g u s t

Tu r k m e n i s t a n : TECHNIP is awarded, by the MINISTRY OF OIL AND GAS OF TURKMENISTAN, a turnkey contract, worth about US $200 million, for the engineering and construction of a 1.8-million-ton-a-year catalytic cracker to be located in the Turkmenbashi refinery.

15 LinesHy d ofro c businessa r b o n s

Hy d r o c a r b o n s , the Group's primary business sector, experienced a marked increase in 1997 compared to the previous year, growing from 45% to 54% of a consolidated turnover which itself rose by 17%. All sectors within this line benefited from sustained ac t i v i t y , particularly the refining sector which was characterized by the successful completion of large-scale projects (Leuna in Germany, Bukhara in Uzbekistan) and the coming into force of major contracts (in Egypt, Ven e z u e l a , Du b a ï , Tur k m e n i s t a n et c. ) . The predominant characteristic of the gas sector was the heightened activity of the Bonny LNG plant in Nigeria. The TECHNIP Group also reinforced its position in the upstream oil sector with the takeover of CBS Engineering in Houston, Texas and the award of a major project in the North Sea (Elgin-Franklin) which will apply the TPG 500 technology developed by TE C H N I P - G E O P R O D U C T I O N .

Oil refining

Leuna refinery - Germany.

16 Eu ro p e distillation. All the units are now in operation, producing products such as LPG, gasoline, petrochemical naphtha, fuel The major event in 1997: TECHNIP oils, gas oils, etc. Facilities related to environmental and its partners deliver the new Leuna refinery protection (sulfur units, water treatment, etc.) are also in Germany functioning normally. Performance tests began during the first quarter of 1998. During 1997, all of the refining units and offsites were delivered by TECHNIP and its partners to MIDER (ELF group), With a capacity of 8.7 million tons a year, the ultra-modern on schedule, ready for start-up and certified conform to Leuna refinery, which incorporates the most up-to-date German and international standards by official certification environmental protection technologies, constitutes the organisms. The process units were progressively brought on biggest investment in Europe's refining sector in over 15 stream beginning with the distillation unit in October. This years. Under the June 1994 contract with MIDER, the TLT unit is the first industrial-scale application of the progressive joint venture (THYSSEN-LURGI-TECHNIP ANLAGENBAU) "D 2000" distillation process patented and developed by carried out all of the engineering, equipment procurement TECHNIP, in association with Elf. Based on a new sequence and construction. of the steps in a traditional separation refining process, this technology allows cuts of 20 to 30% in energy consumption Project management, handled by TECHNIP, was a major (fuel, steam and electricity) compared to conventional factor in the success of this exceptional turnkey project. • • •

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Bukhara refinery - Uzbekistan.

• • • Revampings and expansions

Through their activities, the companies of the Group played a In both cases, the use of IFP technologies led to improved role in the upgrading and optimization of Europe's refining product quality. TECHNIP CIS in St. Petersburg and fa c i l i t i e s . TECHNIP URAL in Ufa performed most of the engineering work on these two projects. TECHNIP also has a contract for In July 1997, NYNAS AB (a joint venture between Venezuela's the engineering and construction of a new alkylation unit PDVSA and Norway's NESTE OY) awarded TECHNIPETROL a (300,000 tons/year) and sulfur regeneration for the third US $35 million turnkey contract covering the design and refinery in Ufa owned by NOVOUFIMSK. The financing for construction of a 3,200-barrel-day hydrotreatment unit and this project is currently being arranged. Since it is likely to be an amine treatment unit for the Nynas Hamn refinery near covered by the recent Franco-Russian credit line with Stockholm, Sw e d e n . repayments guaranteed by a buy-back agreement for petroleum products, the contract could come into force TECHNIPETROL also won two new projects in Po l a n d wo r t h during 1998. a total of US $60 million. The first, for PETROCHEMIA PLOCK, concerns the revamping of a fluidized bed catalytic Following successful performance tests, UZBEKNEFTEGAZ cracker (KELLOGG process) at the Plock refinery and the pronounced the provisional acceptance of the Bukhara second covers the engineering and construction of a refinery in Uzbekistan in November 1997. Construction was 384,000-ton-a-year isomerization unit and the revamping of a 416,000-ton-year reformer at the Gdansk refinery.

Finally, in Gr e e c e , TECHNIPETROL was awarded by MOTOR OIL HELLAS, in December 1997, the turnkey revamping of a fluidized bed catalytic cracker (FCC) at its refinery in Corinth.

C. I . S . / C e n t r al Asia

In R u s s i a, TECHNIP successfully completed two refinery revamping projects at Ufa in Bashkortostan: the complete revamp of a 20,000-barrel-a-day hydrocracker at the UFANEFTEKHIM refinery, and the modernization of a one- million-ton-a-year catalytic reformer at the NOVOIL refinery. Refining units at Ufa - Russia.

18 completed in June 1997, just two years after the coming into condensates from the Gulf. It will include five MEROX force of the contract, allowing the refinery to come on stream units and will yield kerosene (2 X 17,000 barrels/day), three months ahead of schedule. This performance is all the diesel (11,500 barrels/day), LPG (5,000 barrels/day), more remarkable since this is the first time that TECHNIP has and naphtha (33,000 barrels/day) for both local and worked in Uz b e k i s t a n , a country not easily accessible for the export markets. The total value of the contract is about transport of equipment. Moreover, this was the first turnkey US $183 million. Completion is scheduled for the project to be carried out by a foreign engineering company in spring of 1999. the former Soviet Union. Located 55 kilometers from In Saudi Arabia, TECHNIP continued to carry out the Bukhara, the new 2.5-million-ton-a-year refinery will produce turnkey contract, signed with SAUDI ARAMCO in gasoline and gas oil from gas condensates coming from August 1996, concerning the development of the Kokdumalak. The refinery has been designed so that the Shaybah field. The project covers the construction of capacity can possibly be doubled. hydrocarbon treatment units at the Abqaiq refinery The US $200-million contract signed by the TU R K M E N I S T A N near Dharan. Work is at an advanced stage today and OIL AND GAS MINISTRY (represented by the MEHRAV should be completed before the end of 1998. The new Group) and TECHNIP for a turnkey MSCC (Milli Second facilities include a crude stabilization unit, shipping Catalytic Cracking) plant in Turkmenistan came into force facilities, an NGL extraction unit and a distributed in August 1997, thanks to a multi-source financing control system. arrangement, including export credits from France, Belgium, Turkey and Malaysia. This 1.8-million-ton-a-year catalytic cracker (UOP process) will be built at the Turkmenbashi refinery, on the coast of the Caspian Sea.

Already active in Russia for many years, the TECHNIP group, backed by these significant references, has now opened the door to the market represented by the new republics of Central Asia.

NGL stripping column - Abqaiq refinery - Saudi Arabia

Meanwhile, TECHNIPETROL has continued, and nearly completed, construction of a tank farm for refined products at Jizan (16 multi-product tanks, pipelines, etc.) for SAUDI ARAMCO. • • •

Signing of MSCC contract - Turkmenistan.

Middle East

In June 1997, ENOC PROCESSING CO. awarded TECHNIPETROL a contract for the engineering, equipment procurement and construction of a condensate refinery at Jebel Ali in the Emirate of Dubaï (U.A.E.). Six months later an addendum to the contract was signed for doubling the refinery's initially planned capacity. The refinery will use UOP technology to process 6 million tons a year of

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PIPELINES CO.) and covers engineering, equipment supply and construction of the refinery's utilities and offsites. MIDTAP shareholders are EGPC (40%), the MISR Bank (30%) and Egyptian private investors (30%). The project is partially financed by the European Investment Bank and all payments have been secured by irrevocable letters of credit and confirmed by international banks.

The design of Ameryia refinery is based on a high conversion scheme including a hydrocracker and a delayed coker. The refinery will also include: crude and vacuum distillation, naphtha hydrotreater, naphtha splitter, catalytic reformer, isomerization (Penex), kerosene sweetening (Merox), distillate hydrotreater, hydrogen, light ends and gasoline recovery, • • • Af r i c a amine regeneration, sulfur treatment, sour water strippers, light ends MEROX unit, as well as utilities and offsites. The “MIDOR refinery” in Egypt Currently, basic engineering of the project is just about finished, earthworks are complete and the actual The billion-dollar project for the turnkey design and construction is slated to begin this summer. The refinery will construction of the 'MIDOR refinery' came into force on June come on stream at the end of 20 0 0 . 30, 1997. The companies of the Group - TECHNIPETROL, TECHNIP and TECHNIP INTERNATIONAL - had earlier signed two interdependent contracts covering the supply of a 5-million-ton-a-year grassroots refinery in the free zone of Ameryia in E g y p t. The first contract, signed with MIDOR (MIDDLE EAST OIL REFINERY), covers the engineering, equipment supply and construction of the process units. MIDOR is 60%-owned by the Egyptian oil company EGPC, 20% by the Egyptian private company HUSSEIN SALEM and 20% by the private group MERHAV. The second contract was signed with MIDTAP (MIDDLE EAST OIL TANKAGE AND

Model of MIDOR refinery - Egypt.

20 plant/fuel gas system, naphtha hydrotreater, amine regeneration, sour water stripping, sulfur recovery, utilities and offsites.

This project is important for CONTRINA since it is the first contract to be awarded for processing extra-heavy crude in Venezuela. With 270 billion barrels of recuperable reserves, the Orinoco belt is currently the world's largest reservoir of Signing of "VEHOP" project - Venezuela. heavy crude scheduled to be developed - through five other projects similar to the VEHOP project - in the coming years.

TECHNIPETROL and its Colombian affiliate TIPIEL SA, in Latin America association with the companies DISTRAL and CMD, are carrying out a turnkey contract, worth more than US $30 First project for Orinoco extra-heavy million, awarded by ECOPETROL at the end of 1996. It crude oil treatment processing facilities covers the revamping and capacity increase of the fluidized bed catalytic cracker (UOP process) at the Barrancabermeja On June 30, 1997, PETROZUATA CA, a joint venture made refinery in Co l o m b i a . • up of CONOCO (50.1%) and MARAVEN (49.9%), awarded CONTRINA a US $600-million contract for the engineering, equipment supply and construction of the extra-heavy crude treatment units at José, near Puerto La Cruz, in Ve n e z u e l a . CONTRINA was specially created, in the form of a permanent joint venture, to participate in Venezuela's heavy oil development program. It is made up of five engineering and construction companies: TECHNIP (Paris, France); BROWN & ROOT and PARSONS (Houston, Texas, USA); PROYECTA, and DIT HARRIS of the TECHNIP group (Caracas, Venezuela).

The current contract covers the process units and utilities for the downstream "VEHOP" project (VENEZUELA EXTRA HEAVY OIL PROJECT), the purpose of which is to treat the extra-heavy crude oil from the Zuata field in the Orinoco belt. The 120,000-barrel-a-day plant will include: crude desalter/vacuum distillation, delayed coker, gas recovery

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Gas

Middle East gas from the Thammama C and D gas fields in the Habshan zone. TECHNIP, under a turnkey contract, had previously Within the framework of the debottlenecking of the North carried out the OGD1 project, in association with BECHTEL. Field gas treatment facilities in Qa t a r , TECHNIP successfully revamped and expanded the capacity of the gas processing As part of its program to upgrade the gas it produces, units at Messaieed on behalf of QATAR GENERAL particularly at Bab-Habshan, ADNOC has awarded TECHNIP- PETROLEUM CORPORATION. GEOPRODUCTION (Abu Dhabi) the basic engineering for the expansion of the sulfur processing, storage, handling, and For ABU DHABI NATIONAL OIL COMPANY (ADNOC), loading facilities built at Ruwais by TECHNIP in 1996. This TECHNIP performed the front end engineering design for the project, which will increase the site's sulfur treatment second phase of the Bab/Habshan gas treatment complex capacity to 7,650 tons per day from 4,250, represents the first in Abu Dhabi. The project, called OGD2 (Onshore Gas significant step towards downstream work for TPG's Abu Development II), covers facilities to process 1.2 billion scfd of Dhabi office.

In order to take into account changes in the planned capacity and in the composition of the gas to be processed, TECHNIP continued the front end engineering design of the gas liquefaction plant at Bal Haf in Ye m e n . All the engineering and the tender documents, prepared by TECHNIP for the construction of a 5.3-billion-ton-a-year plant and two pipelines, will be handed over during the first half of 1998 to YEMEN LNG (an association of international companies whose main shareholder is TOTAL).

The gas compression station on the El Isba field in Sy r i a , the turnkey design and construction of which was awarded to TPL by AL FURAT PETROLEUM CO. in May 1996, is now being completed.

Af r i c a

The turnkey construction of the Bonny LNG plant in Ni g e r i a progessed significantly in 1997 with 70% of the job complete at the end of the year. Detailed engineering was practically finished and purchase orders were placed for almost all of the equipment and materials. Construction of the plant itself was 40% complete. This $2-billion contract, awarded to TSKJ Fractionation column - OGD 1 - Abu Dhabi. (TECHNIP/SNAMPROGETTI/KELLOGG/JGC) by Nigeria LNG

22 Bonny liquefaction train - Nigeria.

LTD. in December 1996, covers the design and construction of a 5.9-million-ton-a-year liquefied natural gas complex (two liquefaction trains, a network of gas pipelines, and utilities and offsites including a vast residential area). As initially scheduled, the first liquefaction train will be completed in the summer of 1999 and the second train five months later. First deliveries of LNG to Europe should begin in October 1999. NIGERIA NATIONAL PETROLEUM CORP., SHELL, ELF, AGIP and PHILLIPS will supply the complex with 8.6 billion cubic meters of gas per year. European customers for the LNG are ENEL (Italy), ENAGAS (Spain), BOTAS (Turkey), GAZ DE FRANCE, and TRANSGAS (Portugal).

Latin America

At the beginning of the year, TECHNIPETROL signed, with YPF, a consultancy contract for the project management of an NGL fractionation unit at Loma La Lata in Ar g e n t i n a . •

Bonny residential area Nigeria.

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Oil and gas upstream

Op e r ational base in Houston, Texas units and subsea polyphase pumping systems - to the (U S A ): CBS ENGINEERING «Majors» and American independent petroleum companies.

In 1997, TECHNIP reinforced its position in the upstream sector with its takeover of 80% of CBS ENGINEERING INC., a North Sea (Great Britain) company with a staff of 200, headquartered in Houston, In March 1997, TPG UK (TECHNIP Group), in a joint venture Texas. The firm specializes in basic and detailed engineering with McDERMOTT MARINE CONSTRUCTION and BARMAC, and project management services for oil and gas production was awarded the engineering, equipment supply, construction, facilities, both onshore and offshore: metallic structures, installation, hook-up and start-up preparation of a TPG 500 platforms, pipelines, subsea equipment, floating production platform for the development of the Elgin-Franklin fields platforms, and minimal platforms. operated by ELF EXPLORATION UK.

CBS ENGINEERING, formed in 1980 by its current managers, Representing an investment of about £400 million, this has completed over 1,800 projects of all sizes worldwide, production/utilities/accommodation platform is designed to notably in the Caribbean area. Its recent engineering and process 14.6 million m3 of gas, produce 150,000 barrels a day of service contracts include: the “Pedernalès phase 2” condensates, and house up to 69 people. Located on the Elgin development project in V e n e z u e l a for BP Exploracion; in field, 240 kilometers from Aberdeen, the 3-legged platform will T r i n i d a d, two gas drilling and production platforms, stand at a water depth of 92 meters on piled steel foundations “Flamboyant” and “Immortelle” (450 MMSCFD), and a 40”- and is scheduled to come into operation in 2000. This alliance diameter pipeline for AMOCO Trinidad; a four-pile platform contract is being carried out by an integrated project team made for SHELL/PECTEN's Lipenja field in C a m e r o o n; and oil up of personnel from the joint venture and the client. The work production facilities for ORYX ENERGY for the Arman field on is running to schedule. Dry dock assembly of the platform hull the coast of the Caspian sea in Ka z a k h s t a n . began in February 1998. TPG-licensed equipment and the leg In order to meet a new type of demand from operators, CBS components are now being delivered to the jobsite. has developed the ‘Minimal Offshore Support Structure’ (MOSS), that substantially cuts costs by reducing the weight of This selection of the TPG 500 by ELF EXPLORATION UK and its offshore jackets and piles. These structures are particularly partners (TEXACO, SHELL, ARCO, BRITISH GAS, AGIP, HARDY well suited for and RUHRGAS) is an excellent showcase for marketing this marginal fields using innovative TECHNIP-GEOPRODUCTION technology. Fully unmanned platforms. equipped on land and ready to self-install at sea, the TPG 500 CBS is also in a good permits substantial savings over conventional methods. position to promote Particularly well suited to the extremely difficult conditions sales of TECHNIP of the North Sea, the TPG 500 was first used for a BP G E O P R O D U C T I O N EXPLORATION drilling/production platform, installed in technologies - the 110 meters of water, on the Harding field in January 1996. self-installing TPG 500 platform, the semi submersible Middle East TPG 3300 deep-water platform, the UN I D E C K ADCO awarded TECHNIP-GEOPRODUCTION (Abu Dhabi) TPG integrated deck an engineering and services contract for the installation of installation method, new control rooms and distributed control systems for the MOSS platform - Gulf of Mexico. floating production Bu Hasa and Asab onshore fields.

24 Elgin-Franklin TPG 500 platform North Sea.

As i a

As part of the development program for the Maharaja Lela/Jamalulaman gas field in Br u n e i , TECHNIP MALAYSIA was awarded, by ELF PETROLEUM ASIA BV, a major contract covering engineering, equipment supply, construction and 245 m installation of a gas terminal at Lumut. TECHNIP MALAYSIA was also awarded, by BOUYGUES OFFSHORE, an engineering contract for offshore facilities.

In M a l a y s i a, PETRONAS CARIGALI awarded TECHNIP MALAYSIA a contract for the conceptual design and basic engineering for the development of offshore fields (Angsi, Bunga and Kekwa) as well as detailed engineering for a compression (50 MMSCFD) and oil/gas separation unit for the Samarang field. SARAWAK SHELL Bhd awarded the company a contract for the conceptual and detailed engineering of the expansion and revamping of offshore installations at Sarawak.

For NIPPON OIL EXPLORATION, TECHNIP MALAYSIA is ADMA OPCO awarded TECHNIP-GEOPRODUCTION Abu carrying out a contract covering detailed engineering of the Dhabi the design and detailed engineering of three monopod development of the Helong gas field (200 km off the coast platforms for the Umm Shaïf offshore field. This contract of Sarawak). follows an important service contract awarded by the same client, at the end of 1996, for the development of pilot gas re- For ESSO, TECHNIP MALAYSIA successfully completed the injection facilities for the Zakum offshore field. revamping of the crude oil terminal at Terrenganu near Ke r t e h . Finally, ADGAS awarded its first contract to TPG Abu Dhabi for detailed engineering, procurement services and construction management of a loading pipeline for methane tankers. Latin America

Thus, with a staff of 200, TECHNIP-GEOPRODUCTION In Ve n e z u e l a , the 'Deep Jusepin' project was carried out by Abu-Dhabi is now working directly for all of the ADNOC the TECHNIP-GEOPRODUCTION/DIT-HARRIS/INELECTRA subsidiaries operating in Abu Dhabi. joint venture, in two phases: a preliminary development phase for 10,000 b/d was completed in less than eight months and the permanent development phase for 30,000 b/d took Af r i c a 14 months. The facilities were brought on stream at the end TECHNIP-GEOPRODUCTION successfully completed, to ELF of October 1997. • PETROLEUM NIGERIA's satisfaction, the basic engineering contract for the development of the onshore Obite gas field in N i g e r i a. TECHNIP-GEOPRODUCTION was also awarded a contract for detailed engineering of treatment facilities for water used in injection at the Obagi center, one of the three production centers on the Obite field.

Separation unit - Deep Jusepin - Venezuela

25 LinesPet r ochemicals of business - Chemicals

Petrochemicals and fertilizers represented a stable share of the Group's activity in absolute terms, with a turnover amounting to almost 3.5 billion francs. C e r t a i n companies in the Group obtained noteworthy commercial successes in markets not easily accessible: TECHNIPETROL won a major turnkey contract for an ammonia plant in Australia and TECHNIP was awarded a project for a polypropylene plant in the U. S. A . by an American client. In petrochemicals, several recently awarded contracts point to a satisfactory level of activity in Western Europe for 1998. In addition, the creation of KREBS-SP E I C H I M , at the end of 1997, will reinforce the TECHNIP group's position in fertilizers and in the sectors of the chemical industry.

Petrochemicals/Chemicals

North America

TECHNIP, in association with one of the leading American engineering companies, FLUOR DANIEL, was selected by AMOCO CHEMICAL in February 1997 to design and construct a new polypropylene unit for the chemicals complex at Chocolate Bayou, Texas, U. S . A . Within the joint venture, TECHNIP carried out basic engineering and some of the detailed engineering for the process units and prepared the specifications and the selection of the critical equipment. FLUOR DANIEL is responsible for the engineering of the utilities and offsites, some of the detailed engineering for process units, procurement and construction. With a capacity of 250,000 tons per year, this single-reactor unit will use AMOCO CHEMICAL's gas-phase technology. It will come on stream in early 1999.

At Cooper River in South Carolina, TECHNIPETROL successfully completed a contract to double the capacity of a purified terephthalic acid (PTA) plant to one million tons a year. TECHNIPETROL duplicated a similar plant built in Malaysia for the same client, AMOCO CHEMICAL, while at the same time satisfying specific local requirements (American regulations, climatic conditions, construction methods, etc.). The Group's Italian company has designed Cooper River PTA plant - U.S.A and constructed six PTA plants in various countries (2 million

26 - Fer t i l i z e r s

tons per year in all), including four for AMOCO CHEMICAL, the world's largest producer of this intermediate used in the production of polyester.

In July 1997, KREBS-SPEICHIM won a contract to supply equipment to expand capacity at ALBCHEM’s sodium chlorate unit at Bruderheim in Ca n a d a . The facility, whose capacity will be brought up to 70,000 tons a year from 50,000, was designed and built by KREBS-SPEICHIM using its own proprietary technology. It should be pointed out that this sodium chlorate technology is used in more than 30 units throughout the world, particularly in the U.S.A. and Canada.

Port Jérôme rubber drying unit - France. Western Europ e

At Geel in Be l g i u m , TECHNIPETROL continued work on a Acceptance of the new rubber drying line, built at Port contract won in March 1996 covering the construction of a Jerome in F r a n c e, was pronounced in January 1998 by new 500,000-ton-a-year PTA plant for AMOCO CHEMICAL BAYER ELASTOMERES. TECHNIP carried out basic and BELGIUM. The unit, for which TECHNIPETROL performed detailed engineering as well as management of the project, the front end engineering design in 1995, is now nearing the aim of which was to modernize the site with respect to completion. It is the second of its kind designed and built by environmental protection and optimization of production, TECHNIPETROL at Geel for the same client. quality control and safety.

Construction work on a 40,000-ton-a-year expandable In February 1998, the Dutch group DSM awarded TECHNIP a polystyrene plant near Mons in Belgium began in September contract for the revamping and expansion of the ethylene 1997. TECHNIP was awarded, in December 1996, the cracker NAK3 at its Geleen petrochemicals complex near engineering and project management of this project by Maastricht in the Ne t h e r l a n d s . The contract covers detailed GABRIEL TECHNOLOGIE, of the KNAUF LA RHENANE engineering, equipment supply and construction. The project group, one of Europe's leading producers of building will permit an increase in production of both propylene and materials (plaster and insulation) and packaging. Investment ethylene. Shutdown of the cracker, scheduled for March represents about US $60 million. 2000, will mark the beginning of the second phase of the works.

At the beginning of March 1998, DSM POLYOLEFINS GmbH, the German affiliate of the DSM group, awarded TECHNIP a contract for the engineering and project management of a new polypropylene unit at Gelsenkirchen in Ge r m a n y . Services include basic and detailed engineering, equipment and materials supply, and construction supervision. The plant, which will use AMOCO CHEMICAL's gas-phase technology, will come on stream in 2000. TECHNIP previously designed and built, for DSM at Geleen, a 150,000-ton-a-year polypropylene plant, using the same technology, which came on stream in 1996. • • •

Geel PTA plant - Belgium.

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• • • Since the second half of 1997, TECHNIP, in association with the British construction and engineering group AMEC Process and Energy, has been working on two contracts for the front end engineering design of petrochemical plants in Grangemouth, S c o t l a n d. The first project, awarded by APPRYL -a joint venture made up of ELF ATOCHEM (51%) and BP CHEMICALS (49%)- covers basic engineering and preparation of detailed engineering of a 250,000-ton-a-year polypropylene plant using APPRYL technology. The second project covers similar services for a 300,000-ton-a-year single- As i a train polyethylene plant using BP CHEMICALS technology. The two plants would be erected in the same area and would The construction of a new 200,000-ton-a-year polyethylene use common utilities and offsites. Both of these engineering line at Merak in In d o n e s i a is nearly complete, with start-up contracts, undertaken under an alliance agreement between scheduled for April 1998. The project is being carried out TECHNIP, AMEC and the two clients, are now practically under an alliance agreement between TECHNIP MALAYSIA complete, which could allow APPRYL and BP CHEMICALS to (detailed engineering and equipment supply), JGC make their final investment decisions in 1998. (construction), and the client PT PENI (whose main shareholder is BP CHEMICALS), who is responsible for In It a l y , TECHNIPETROL has been awarded, by POLIMERI start-up. TECHNIP (Lyon) had earlier performed basic EUROPA (ENICHEM/UNION CARBIDE), the revamping and engineering. Built in the west of Java, the unit is based on the expansion of its Brindisi ethylene plant. ENICHEM has also new BP CHEMICALS technology, which utilizes pentane awarded the company the revamping of the instrumentation condensation and a modified catalyst. and the automation (installation of a DCS system) of the Porto Marghera ethylene plant.

Middle East

Performance tests of the revamped Umm Said ethylene plant in Qatar took place successfully in January 1997. Since then the plant has been operating above its contractual capacity (525,000 tons/year). The project was conducted while the plant was in operation, requiring only very short shutdowns for equipment replacement and tie-in. The capacity expansion, carried out by TECHNIP using TOPKIN technology, owned jointly with KTI, is very exceptional (75% in a single step). In addition, the project permitted the modernization of the plant, operated by QAPCO, with respect to control and safety. TECHNIPETROL participated in the project by carrying out the expansion of the plant's utilities.

TPL and TECHNIP have nearly completed work on the contracts awarded by TABRIZ PETROCHEMICAL COMPANY in 1993. The contracts covered basic and detailed engineering, equipment supply, construction assistance, and start-up assistance for most of the units (ethylene, polyethylene, polystyrene, ethylbenzene and styrene) at the Tabriz complex, located in the northwest of Ir a n . Merak polyethylene plant - Indonesia.

28 - Fer t i l i z e r s

KREBS-SPEICHIM is responsible for the turnkey delivery in 1998, on the same industrial site at Merak, of a 100,000-ton- a-year vinyl chloride monomer (VCM) plant for PT SIM, a joint venture between the Indonesian group SALIM and the Japanese company SUMITOMO.

TECHNIP MALAYSIA completed, three months ahead of schedule and to the satisfaction of the client, POLYETHYLENE MALAYSIA, a compounding unit for Tabriz complex - Iran. polyethylene and additives at Kerteh in M a l a y s i a. At Kuantan, TECHNIPETROL/TECHNIP MALAYSIA completed de-bottlenecking of the AMOCO CHEMICAL PTA plant, thus (TECHNIPETROL), and a 200,000-ton-a-year polypropylene increasing the plant's capacity by 20% for an additional plant at Yanshan near Beijing (TECHNIP). 100,000 tons a year of capacity. In the sector of chlorinated products, TECHNIPETROL is CABOT MALAYSIA awarded TECHNIP MALAYSIA the designing and building a 24,000-ton-a-year epichlorhydrine turnkey design and construction of a carbon black plant, unit at Yueyang in Hunan province. After having its with a capacity of over 40,000 tons a year, to be built at Port technology selected by CNCCC/CANGZHOU CHEMICAL Di c k s o n . INDUSTRIES, KREBS-SPEICHIM was awarded the basic engineering and specific equipment supply for the In the sector of polymers, the Group is designing and construction, at Cangzhou (Hebei), of a dichloroethane building in C h i n a, for SINOPEC, a 140,000-ton-a-year cracking unit, designed to produce 120,000 tons a year of polyethylene plant at Qilu, Shandong province VCM. KREBS-SPEICHIM also obtained the acceptance certificate of a 20,000-ton-a-year bulk PVC plant, based on the ELF ATOCHEM process, built at Yibin (Sichuan province). Finally, in the sector of synthetic f i b e r s, KREBS-SPEICHIM obtained provisional acceptance of a polyester plant (200,000 tons a year, based on the ZIMMER process) built at Liao Yang in Liaoning province. Construction by TECHNIPETROL of the 50,000-ton-a-year caprolactam plant at Shijiazhuang, in the province of Hebei, is nearly complete. Ca p r o l a c t a m is an intermediate product used in the production of nylon. Liao Yang polyester plant - China Latin America

Under the terms of a turnkey contract signed in 1996, TECHNIPETROL, in a consortium with JANTESA, is designing and constructing a 120,000-ton-a-year PVC unit, based on the GEON process, for PEQUIVEN at El Tablazo in Ve n e z u e l a . Completion is scheduled for the first half of 1998. •

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Fertilizers

units (2 X 2,200 tons/day) using SNAMPROGETTI technology. Project financing is currently being arranged, which should allow the contract to come into force in the near future.

In April 1997, KREBS-SPEICHIM performed the start-up of the sulfuric acid (2,000 tons/day) and phosphoric acid The recently established company KREBS-SPEICHIM, of (700 tons/day) units built at Eshidiya in Jo r d a n on behalf of which six months of activity is included in the 1997 turnover INDO JORDAN CHEMICALS CO. In addition, as scheduled in (50% according to the proportional method), represents a the contract signed by KREBS and CHIYODA, the provisional major player for the Group in the fertilizer sector. The acceptance of the NPK plant at Aqaba was pronounced combined experience of several companies in the Group in July 1997 by NIPPON JORDAN FERTILIZER CO. With a means that capabilities cover ammonia and urea, as well as capacity of 300,000 tons per year, the Aqaba plant represents the whole range of nitrogenous and phosphate fertilizers, a major reference for the Group. from basic products used in their composition (nitric acid, sulfuric acid, phosphoric acid) on through all forms of compound fertilizers.

Eu ro p e

In March 1997, CHEMOPROJEKT, the Czech affiliate of KREBS-SPEICHIM based in Prague, won a turnkey contract, worth about US $30 million, from DUSLO for the design and construction of a 900-ton-a-day nitric acid plant to be built at Sala, in S l o v a k i a. The project team, combining resources from both CHEMOPROJEKT and KREBS-SPEICHIM, is based in Prague.

Middle East

In March 1997, the SNAMPROGETTI/TECHNIP joint venture Aqaba fertilizer plant - Jordan. was selected to finalize with OMAN FERTILIZERS the turnkey contract, worth about US $800 million, for the design and construction of an ammonia/urea complex at Sour in the Sultanate of Oman. The project includes two ammonia units (2 X 1,750 tons/day) using the TOPSOE process, and two urea

30 - Fer t i l i z e r s

As i a Latin America

Within a consortium including KLÖCKNER and two Pakistani Under the terms of a turnkey contract, worth about US $50 partners, DESCON and HABIB RAFIK, KREBS-SPEICHIM, million, awarded by FERTILIZANTES FOSFATADOS SA as technical leader, is participating in the execution of a (FOSFERTIL) in April 1997, KREBS-SPEICHIM and its US $250 million contract for a fertilizer complex at Bin Qasim Brazilian affiliate KREBS ENGENHARIA are working in close in P a k i s t a n. KREBS-SPEICHIM's services concern, in collaboration on the turnkey design and construction of a particular, a 1,670-ton-a-day urea unit (STAMICARBON 1,800-ton-a-day sulfuric acid unit and the expansion process and HYDRO-AGRI granulation process), the of a phosphoric acid unit (470 to 1,020 tons/day) at Uberaba engineering of which was performed in collaboration with its in B r a z i l. The project is based on KREBS-SPEICHIM's Czech affiliate CHEMOPROJEKT and a 1,350-ton-a-day phosphoric acid technology and basic engineering, diammonium phosphate unit (Grand Paroisse process). and demonstrates FOSFERTIL'S confidence in the specialists Start-up of the units is scheduled for 1998. of both KREBS-SPEICHIM and Rio de Janeiro-based KREBS ENGENHARIA. • In C h i n a, the aluminum fluoride plant at Luzaï (6,000 tons/year) is being erected and the new facilities at Jinchang (200 tons/day of phosphoric acid and 400 tons/day of DAP) are in the start-up phase (KREBS-SPEICHIM).

Au s t ra l i a

In July 1997, TECHNIPETROL was awarded, by WESFARMERS CSBP, a turnkey contract, worth about US $100 million, for a 650-ton-a-day ammonia plant to be built at Kwinana, near Perth in A u s t r a l i a. The plant will employ TOPSOE process technology. Construction is scheduled for completion in 1999.

Uberaba phosphoric acid unit - Brazil.

31 Lines of businessIndustries and

Cement

The cement field, which accounts for over half the turnover of TEC H N I P 's “diversified industries” sector, was marked by the award, in 1997, of a major new turnkey contract in the United Arab Emirates and the award of expansion and upgrading projects (U.S.A. and Morocco). TECHNIP CLE's activity was steady thanks to start-up operations of facilities, But Son cement plant - Vietnam. particularly in Brazil.

Tur n k ey proj e c t s In Le b a n o n , TECHNIP CLE continued the engineering and construction of the Sibline cement plant (2,400 tons/day), Financing of the contract, signed in March 1997 by RAS AL which is now 80% complete. KHAIMAH CEMENT CO. (RAKCC) and TECHNIP, for the turnkey construction, at Khor Khwair in the Emirate of Ras The But Son cement plant (4,000 tons/day) near Hanoi in Al Khaimah, United Arab Emirates, had been entirely Vi e t n a m , the design and construction of which was awarded arranged at the end of 1997. Execution of the contract, worth to TECHNIP CLE by VINACIMEX, is about to enter the start- about US $150 million, had already begun last July thanks to up phase. the setting up of an initial credit installment. The plant, which will apply TECHNIP CLE technology, in particular for precalcination, grinding and environmental protection, will come on stream in 2000. LAFARGE, as consultant to the client and future operator of the plant, has signed a buy-back agreement with RAKCC for part of the final products, which will be marketed in the Emirates and abroad.

32 Bu i l d i n g s

Ne w expansion proj e c t s and unit upgrad e s

In June 1997, NATIONAL CEMENT (USA), a fully-owned affiliate of CIMENTS VICAT, signed a contract with TECHNIP covering engineering and equipment supply for the remodelling and expansion of the drying line (to 3,100 tons/day of clinker from 1,900 tons/day) at its cement plant in Lebec, California, U.S.A. LAFARGE CIMENTS MAROC awarded TECHNIP CLE two The facilities renovated at Volos in G r e e c e have been in modernization projects for its cement plants in Bouskoura, operation since June 1997. near Casablanca and at Meknes in Mo r o c c o . Both projects consist mainly in the remodelling of the preheaters and the In the Near East, TECHNIP CLE successfully completed the installation of precalciners. Fuhais project in Jo r d a n .

St a r t -up of ren o vated plants In B r a z i l, the no. 4 drying line of the Salto de Pirapora cement plant was brought back into service in March 1997 The Port-La-Nouvelle cement plant, near Narbonne in with its capacity doubled to 5,000 tons a day. Shutdown of France, was brought back into operation in February 1998 the kiln was limited to just five months. TECHNIP CLEPLAN, following optimization design and construction work carried the Group's Brazilian affiliate based in Sao Paulo, carried out out by TECHNIP CLE under a contract, worth about US $17 this project for VOTORANTIM. It included complete million, awarded by LAFARGE CIMENTS in July 1996. Using engineering of the facility, supply of preheater and RSP the most advanced technologies for environmental precalciner technologies, and supervision of manufacturing protection and energy savings, TECHNIP CLE supplied, in and construction. TECHNIP CLEPLAN also increased the particular, equipment based on its proprietary technologies (a capacity of the cement grinding unit by installing two low pressure drop cyclone preheater and a complete MINOX ® CKP 180 pregrinders and a ball grinder. The total project was pr e c a l c i n e r ) . the equivalent of delivering, on a turnkey basis, a good-sized grassroots cement plant.

For CIMENTO ITAU, an affiliate of the VOTORANTIM group, TECHNIP CLE also revamped and expanded the Itau de Minas cement plant by supplying and installing two CKP grinders. The renovated facilities have been brought back into operation and performance tests are scheduled for March 1998. TECHNIP CLE is also about to start up, for VOTORANTIM, a new CKP 220 pregrinder installed at the Rio Negro cement plant and, for the CIMPOR group, the production line expansion and a CKP 220 at the Cajati cement plant. •

Port-La-Nouvelle cement plant - France.

33 Lines of businessIndustries and

Pharmaceuticals and co s m e t i c s

Although not significant in terms of turnover, since most of the projects are service contracts, this sector represents a not- inconsiderable share of the workload for the Group (by way of ex a m p l e: 10% of engineering hours for TECHNIP in France). It covers activities ranging from the synthesis of active ingredients to formulation and distribution facilities.

Reims pharmaceutical production unit - France. Ph a r m a c e u t i c a l s

The “Losartan 1” pharmaceutical synthesis unit was brought on 120m long), a cold storage warehouse and a logistics stream in August 1997, following which MERCK SHARP & platform. Since then, a second phase, concerning the DOHM (MSD) renewed its confidence in TECHNIP by renovation of 11,000 square meters, has begun. awarding it the engineering, equipment supply and construction supervision of the doubling of the unit's capacity. TECHNIP (Lyon) successfully completed the engineering and Located at Mirabel, near Riom in Fr a n c e , the unit synthesizes project management of the renovation and expansion of a a molecule used for hypertension. major pharmaceuticals production plant at Reims for BOEHRINGER INGELHEIM FRANCE. The project, aimed at KR E B S-SPEICHIM (through SNPE INGENIERIE) developed its doubling the plant's capacity (to 800 million units per year), partnerships with major pharmaceutical producers, signing included engineering, equipment supply, works contracts with SANOFI for a new formulation unit, and with subcontracting, construction supervision and start-up ORIL for a second fine chemicals plant at Bolbec. assistance. TECHNIP, in close collaboration with the client, is currently working on “facilities qualification” to obtain In May 1997, approval from the FDA (Food and Drug Administration). The TE C H N I P co m p l e t e d pharmaceutical plant at Reims manufactures medications in a the first phase of the wide range of forms: liquids, aerosols, and solids (uncoated, project, awarded by coated and sugar-coated tablets). PFIZER in 1996, for the expansion of its Co s m e t i c s pharmaceutical plant at Amboise. The new TECHNIP, in association with the architectural firm BEG, has facilities include a been awarded, by the Japanese group SHISEIDO, the h i g h - c e i l i n g e d engineering and project management for the construction of a warehouse (27m perfumes and cosmetics production plant near Orléans in high, 28m wide and Fr a n c e . Amboise pharmaceutical production unit L'OREAL awarded TECHNIP the complete engineering of a Fr a n c e . plant to produce shampoos and creams at Warsaw in Po l a n d . •

Agro-industries

Et h a n o l Sugar

SEDAMYL, an affiliate of the Belgian group AMYLUM, awarded TECHNIPETROL delivered a turnkey sugar refinery with a KREBS-SPEICHIM the turnkey supply of a 1,200-hl/day ethanol capacity of 1,600 tons/day to UNITED SUGAR CO. at Jeddah distillation/rectification unit. The unit will be built at Nesle in in Saudi Arabia. The contract amounted to US $140 million. • Fr a n c e . KREBS-SPEICHIM is also building ethanol plants at Uralsk and Kustanaï in K a z a k h s t a n and has won a new contract for basic engineering and equipment supply of an ethanol plant at Lishu, Ch i n a .

34 Bu i l d i n g s

Manufacturing industries

TECHNIPETROL/TPL ARABIA delivered, to SAUDI Saudi Arabia, which produces 400,000 pieces of ceramic INDUSTRIAL DEVELOPMENT CO., a plant at Yanbu in sanitary equipment and 40,000 acrylic bathtubs annually. •

Hydrometallurgy

SUMITOMO METALS & MINING, Japan's largest mining The group ERAMET, the world's third largest nickel company, selected KREBS-SPEICHIM technology for its producer, awarded KREBS-SPEICHIM a contract covering new cobalt extraction unit at Niihama in Japan. engineering and project management for the construction of a liquid/liquid extraction unit to be built at Le Havre in KR E B S-SPEICHIM will also supply 16 mixer-settlers, of its own France. Again, KREBS-SPEICHIM will supply the battery of design, built in France according to very strict Japanese regulations. mixer-settlers of its own design. •

Power plants and cogeneration

The expansion of the power plant at Yanbu in Saudi Arabia In early 1998, TECHNIPETROL was awarded a turnkey is 80% complete. This project, worth about US $30 million, contract for a waste incinerator designed to produce energy had been awarded to TPL by ARABIAN INDUSTRIAL (steam and electricity). The unit will be built at Mantua FIBERS CO. in early 1997. It covers, in particular, in I t a l y and will include a 100,000-ton-per-year fluidized the supply of a 65-MW turbine and a 171-ton/hour bed incinerator. • steam generator.

In addition, TPL completed, in December 1997, the turnkey design and construction of a 120-MW power plant at Omar in Syria for AL FURAT PETROLEUM CO.

Buildings

TECHNIP TPS has established itself as a leader in the Asbestos engineering of asbestos removal with the award of two major removal at the European projects: the Jussieu University campus in Paris and Berlaymont building - the European Commission headquarters (the Berlaymont Brussels. building), in Brussels.

In the renovation sector, TECHNIP TPS has won two other significant projects: GAZ DE FRANCE selected the company as deputy project manager for the structural renovation of Finally, in association with the architect Dominique its headquarters in Paris, and CAISSE DE DEPOTS ET PERRAULT, TECHNIP TPS gained heightened recognition CONSIGNATIONS awarded the company, in association with after winning the European Pavillon Mies Van der Rohe the architect Christian BIECHER, the renovation of a building architectural award given by the European Commission and situated on the quai Anatole France in Paris, which used to Parliament for the new French National Library, for which house the CNRS research center, in order to transform it into TECHNIP TPS performed most of the engineering (heat, the bank's headquarters. electrical and mechanical engineering). •

35 EnvironmentEn v i r onment andand S aSfe at f y e t y

A basic principal: design “clean plants” from the start

At every step in the design of a facility, TECHNIP integrates the necessary elements which contribute to the respect of the environment.

During basic engineering, the objectives to be attained are defined in collaboration with the client in accordance with applicable regulations.

Throughout the other design phases, potential sources of pollution are identified and studied, and appropriate measures are decided on to reduce their effects:

• atmospheric gaseous discharges are limited to the minimum technically necessary for the operation of the facilities, • no industrial waste water or liquids are discharged into the environment without prior treatment and control of Priority objectives: hygiene, safet y their characteristics, and environment (HSE)

• as for noise, acoustic studies are developed for all facilities As with environmental protection measures, norms to ensure in order to ensure that noise levels are acceptable. safety and hygiene are taken into account and integrated at every stage of project development (design, construction, At the client's request, the companies of the TECHNIP group operation and maintenance). perform in-depth environmental impact studies integrating both the analysis of national and international regulatory The implementation of this principal is based on a code of constraints as well as specific demands by the authorities. practice which includes the following commitments: These environmental impact studies are essential for clients • During the design phase: performance of plant design in obtaining operating permits for their facilities. with the objective of supplying the client with a plant that is safe to operate and maintain, and respectful of TECHNIP also carries out environmental audits on existing the environment plants to assist in improving their performance in the field of environmental protection. • During the construction phase: • provide employees with regulatory safe and healthy wo r k p l a c e s , • foster an accident prevention philosophy, • provide adequate training and instruction for personnel so that work can be carried out safely, • monitor conformity with HSE policy objectives throughout the life of the project and, if necessary, implement remedial actions.

Project and jobsite teams are particularly aware of these HSE objectives and receive specialized training in these fields. •

36 HumanHuman resourcesresources

With the know-how of its 6,400 employees around the world as a major asset, t h e TECHNIP Group is continuing its human resources policy based on developing to the fullest the multiple capabilities which make up the Group and the improvement of their collective efficiency.

From wel c o m i n g. . .

In 1997, recruitment of young engineers and technicians continued, marked by a greater international openness, as well as by exchanges with the various affiliates of the Group, whether in the form of training programs or by placing CSNE trainees (young people performing voluntary military service in companies overseas) in Germany, Belgium, the United States, Italy, Malaysia and Russia.

. ..to trai n i n g

The objective of the training policy at TECHNIP was to keep It also meant keeping abreast of the various technological abreast of the evolution of its different trades. Because of evolutions linked to the emergence of a new generation of their specific requirements, in-house training was favored systems and to the rapid development of the new Group- in this field. wide electronic mail system.

In addition, the training program integrated a strong intercultural dimension in order to allow the people concerned to constantly improve communication with clients, partners, and local suppliers abroad.

Co n t r actual policy

The year 1997 was marked by the continuation of the Group's contractual policy with the signing of agreements concerning employee profit sharing and the establishment of a plan for an increase in capital limited to employees of the Group in France that year. As a result, more than two thirds of TECHNIP employees now hold shares in the company through the Group's savings plan. •

37 The groupThe TECHNIP TE C grHo

FR A N C E K R E BS-S P E I C H I M from June 1998: Chemical engineering Immeuble Delalande T E C H N I P 8, rue J.P. Timbaud 16 à 32, rue Henri Régnault He a d q u a r t e r s 78180 Montigny le Bretonneux 92902 Paris La Défense Cedex Tour Technip - La Défense 6 Tel.: 33 (0) 1.30.45.92.56 Tel.: 33 (0) 1.47.62.10.00 92973 Paris La Défense Cedex Fax: 33 (0) 1.30.45.97.67 Fax: 33 (0) 1 .47.78.34.24 Tel.: 33 (0) 1.47.78.21.21 from July 1998: Fax: 33 (0) 1.47.78.33.40 TECHNIP TPS Kupka C - La Défense 7 Architectural and building Ly o n 14, rue Hoche en g i n e e r i n g 63 -65, avenue Tony Garnier 92902 Paris La Défense Cedex 24, boulevard de l’Hôpital 69366 Lyon Cedex 07 Tel.: 33 (0) 1.55.91.80.00 75005 Paris Tel.: 33 (0) 4.72.72.42.42 Fax: 33 (0) 1.55.91.89.99 Tel.: 33 (0) 1.44.08.54.00 Fax: 33 (0) 4.72.72.40.00 Fax: 33 (0) 1.47.08.54.50 N A T Ai x-en-Pr o v e n c e 212, avenue Paul-Do u m e r TPS PEYRARD 70, rue Pierre Duhem 92500 Rueil Malmaison Architectural and building Z.I. Les Milles Tel.: 33 (0) 1.55.94.11.20 en g i n e e r i n g 13856 Aix-en-Provence Cedex 03 Fax: 33 (0) 1.47.08.43.68 6/8, rue Saint-Ne s t o r Tel.: 33 (0) 4.42.16.65.30 BP 8052 Fax: 33 (0) 4.42.24.33.09 S P E I C H IM-P R O C E S S I N G 69376 Lyon Cedex 08 Parc Industriel Plaine de l’Ain Tel.: 33 (0) 4.78.76.58.58 A G R O T E C H N I P Alleé du Bois des Terres Fax: 33 (0) 4.78.01.79.06 Ag r o-In d u s t r y BP 26 - Saint Vulbas Same address as TECHNIP in Paris 01155 Lagnieu Cedex Tel.: 33 (0) 4.74.46.22.20 C I T E X Fax: 33 (0) 4.74.46.22.21 EU RO P E Textile and spinning plants Immeuble La Soie T E CH-A T L A N It a l y BP 48 - 13, avenue Bataillon C. Liberté En g i n e e r i n g T E C H N I P E T R O L 69513 Vaulx-en-Velin Cedex 24, boulevard Vincent-Gâche 68, Viale Castello della Magliana Tel.: 33 (0) 4.72.15.21.40 BP 40422 00148 Rome Fax: 33 (0) 4.72.15.21.68 44204 Nantes Cedex 2 Tel.: (39) (6) 65.981 Tel.: 33 (0) 2.40.63.20 Fax: (39) (6) 655.14.02 GUIGUES S.A. Fax: 33 (0) 2.40.20.63.59 Water treatment and environmental Po r t u g a l pr o t e c t i o n Ro u e n L U S O T E C N A 70, rue Pierre Duhem - Z.I. Les Milles Tel.: 33 (0) 2.35.69.46.81 Rua Padre Antonio - Vieira, 26, 5° 13856 Aix-en-Provence Cedex 3 Fax: 33 (0) 2.35.69.33.93 1099 Lisbon Codex Tel.: 33 (0) 4.42.16.65.00 Tel.: (351) (1) 381.77.00 Fax: 33 (0) 4.42.39.78.34 TECHNIP CLE Fax: (351) (1) 383.39.51 Cement plants Rueil Malmaison Same address as TECHNIP in Paris Sp a i n 8, rue Béquet and in Lyon TE C P L A N T-IN G E S T 92502 Rueil Malmaison Gran Via Carlos III, 97 J Tel.: 33 (0) 1.47.32.31.09 T E C H N I P - G E O P R O D U C T I O N 08028 Barcelona Fax: 33 (0) 1.47.51.48.72 Oil and gas field Tel.: (34) (93) 330.98.11 de v e l o p m e n t Fax: (34) (93) 330.90.99 I P E D E X Kupka C - La Défense 7 St a r t-up, operation, training, 14, rue Hoche Bo s n i a-He r z e g o v i n a maintenance engineering, quality 92902 Paris La Défense Cedex P E T R O L I N V E S T consultancy (hydrocarbon and Tel.: 33 (0) 1.47.62.10.00 Tvornicka 3 petrochemical facilities) Fax: 33 (0) 1.47.78.34.24 71000 Sarajevo 366, avenue Napoléon Bonaparte - BP 205 Tel.: (387) (71) 455.850 92502 Rueil Malmaison Cedex Fax: (387) (71) 656.964 Tel.: 33 (0) 1.47.16.82.00 Fax: 33 (0) 1.47.16.82.78

38 upNI P wowr l d o w r i ld w e i d e

Ru s s i a AF R I C A and AM E R I CA S TECHNIP C.I.S. 20, rue Galernaya MI D D L E EA S T U. S . A . Sa i n t-Petersburg 190 000 Saudi Arabia TECHNIP Inc. Tel.: (7) (812) 314.90.63 7660 Woodway D.R. - Suite 250 TECHNIP SAUDI ARABIA Ltd Fax: (7) (812) 315.50.42 Houston, TX 77063 - 1518 P.O. Box 30893 Tel.: (1) (713) 917.06.00 Al Khobar 31952 Rue Rossïskaya, 33/14 Fax: (1) (713) 917.00.77 Tel.: (966.3) 859.53.63 450055 Ufa Fax: (966.3) 859.53.63 Ba c h k o r t o s t a n CBS ENGINEERING Inc. Tel.: (7 347) 235.50.02 United Arab Emirates 1505 Highway 6 South - Suite 310 Fax: (7 347) 233.54.49 Houston, TX 77077 T E C H N IP-G E O P R O D U C T I O N Tel.: (1) (281) 531.76.61 Al Oteiba Tower - Hamdan Street Czeck Republic Fax: (1) (281) 531.62.80 CHEMOPROJEKT a.s. P.O. Box 7657 Abu Dhabi Hybernska 42 Br a z i l Tel.: (971) (2) 32.23.07 110 00 Praha 1 T E C H N IP-C L E P L A N Fax: (971) (2) 32.82.04 Tel.: (42) (2) 26.89.22 Avenida Paulista 2073 Fax: (42) (2) 26.65.53 Tu n i s i a 24/25 Andares - Conjunto Nacional Edificio Horsa 1 - Cerqueira César T . E . C . I . Fi n l a n d 01311 - 940 Sao Paulo SP 15, rue Abderrahmene RINTEKNO OY Tel.: (55) (11) 289.67.55 El Jaziri Tunis - BP 67 P.O. Box 146 - Miestentie 3 Fax: (55) (11) 288.13.84 1002 Tunis Belvédère SF - 02101 Espoo Tel.: (21.61) 894 533 Tel.: (358) 946.981 KREBS ENGENHARIA Ltda Fax: (21.61) 785.871 Fax: (358) 946.311 Avenida Rio Branco 277, Grupo 202 Telex: 122139 RINTE SF 20 047-900 Rio de Janeiro-RJ Tel.: (55) (21) 210.21.55 Sweden (branch office): AS I A Fax: (55) (21) 220.11.98 Datävagen 14 A S-436#32 Askim Ma l a y s i a TECHNIP MALAYSIA Co l o m b i a Tel.:(46) 31.68.09.30 241, Jalan Tun Razak TIPIEL COLOMBIA Fax:(46) 31.68.29.26 Po Box 12041 Calle 38#8-62 Piso 3 Santafe de Bogota D.C. Great Britain 50766 Kuala Lumpur Tel.: (57) (1) 285.86.00 TECHNIP UK Ltd Tel.: (60) (3) 245.48.88 Fax: (60) (3) 245.49.99 Fax: (57) (1) 288.07.46 53 Mill Street Ha r b u r y-Royal Leamington Spa Ve n e z u e l a Warwickshire CV 339 HS Ja p a n NIIGATA TECHNIP Co., Ltd DIT HARRIS S.A. Tel.: (44) (1926) 613.959 9-3, Kamatahoncho 1 - Chome 2da Avenida de la Urbanización Fax: (44) (1926) 614.242 Ohta - Ku Campo Alegre - Edificio Torre Cari Caracas 1060 Be l g i u m Tokyo 144 Tel.: (58) (2) 243.17.22 TECHNIP BENELUX Tel.: (81) (3) 37.39.89.31 Fax: (81) (3) 37.37.19.85 Fax: (58) (2) 241.74.03 Nieuwe Dreef 2620 Hemiksem Tel.: (32) (3) 877.01.32 Ch i n a TECHNIP TIANCHEN Fax: (32) (3) 877.03.60 521 Jing Jin Road Tianjin 300.400 Tel.: (86) (22) 26.39.00.84 Fax: (86) (22) 26.81.85.42

Shanghai branch office: 801, Changle Road Walton Plaza, Room 704 200 031 Shanghai Tel.: (86) (21) 64.66.21.44/45/46 Fax: (86) (21) 64.66.21.56

39 EDITED BY TECHNIP’S COMMUNICATION DEPARTMENT

Editors: Sylvie HALLEMANS (Annual report) Raymond MARI (Financial report)

Design and printing: COMÈTE Communication 33 (0) 1 41 02 92 80

Photos: Bruckenschlag, DK Films, Foto Guido Coolens, J.J. Humphrey, J.P. Bedoin, Krebs-Speichim, BP photolibrary, ELF photolibrary, Technip photolibrary, Total Design, X. Headquarters: Tour Technip - La Défense 6 170, place Henri Régnault - 92973 Paris La Défense cedex - FRANCE Ph.: 33 (0) 1 47 78 21 21 - Fax: 33 (0) 1 47 78 33 40